$200M investment could be just the beginning for Fuyao

Dayton’s been abuzz this year with the news that the former GM Plant in Moraine is getting new life, but things could get even better.

In a surprise appearance in Dayton yesterday, Fuyao Chairman Dewang Cao hinted that his China-based Fuyao Group — it’s pronounced “Fwe-ow” if you’ve been wondering — has bigger plans than what we’re seeing now.

Cao announced at yesterday’s I-70/75 Development Association Meeting he has closed on a 100-acre portion of the former GM Plant in Moraine, buying 1.4 million square feet of space from Industrial Realty Group, a California-based partnership for $15 million. The plant there is going to create 800 jobs, officials have said.

But, Cao said he wants the Moraine operation to be the largest single-site operation for his company. And he’s got future plans for Fuyao in America. Namely, he plans to invest $400 million in the U.S. by 2016, of which the $200 million expected to develop the new plant is only the first step. Cao wants the American operation to mirror the Chinese operations, which are vertically integrated, hinting that additional work in the glass production process could be spun up in America. A research and development center will also be set up here.

And that’s where it looks hopeful. Davis says Fuyao was only looking for 800,000 square feet of space for the plant, but it’s going to have 1.2 million square feet of space at the Moraine site. Even after demolishing some of the older buildings, such as GM’s old paint shop, it’s going to have plenty of room for additional development in Moraine.

The local operation will be a self-sustained company called Fuyao Glass America Inc., separate from, but under the same umbrella as Fuyao North America Inc. which is based in Michigan. Both are a part of Fuyao Group.

“This is significant for us, not just in Ohio. It puts us on an international map,” said Kristi Tanner, a managing director at JobsOhio, the state’s private development arm.

And the Fuyao development is already huge. When fully operational, the facility will produce the glass for 4 million cars a year. The United States produces about 15 million cars a year.

With the sale closed, Fuyao is now a part of the Dayton business community. The first Fuyao employees arrived in Dayton from China last week.

“We have to put ourselves in their position,” said Mike Davis, director of economic development for Moraine. “They’re coming to the Dayton area, many away from their families and completely alone. It will be extremely important to make sure we make them feel welcome in the Dayton region.”

Fuyao Glass America Inc. is incorporated in Ohio. Its president hasn’t yet been selected. Officials said some of Fuyao’s employees are moving to America, mainly to help set the operation up and train employees, but the number wasn’t certain. Hiring will begin as soon as next week for key management positions and engineers. The company is also engaging with engineers and local companies to begin the process of redeveloping the site.

Cao said the line workers will be hired toward the fourth quarter of the year ahead of production starts in May, and that he wants to hire as many locals as possible.

Davis directed inquiries about doing business with the company through Moraine’s economic development office. The company is looking to partner with local companies on construction, and later local suppliers in production. It’s been engaging Moraine business leaders and wants to meet more local companies.

“We have the best wishes, but it will take a significant amount of time for us to understand American corporate culture,” Cao said through an interpreter. “We wish that the people of Ohio welcome us with a flexible and an open mind. I hope for your help and sincerity to help make this a reality.”

Fuyao occupies fully a fourth of the 400-acre, 4.1 million-square-foot complex that was once GM and Delphi’s operations. Their departure had major impacts on the regional unemployment rate and local tax base when they ceased operations in 2008, Davis said. And, he said there may be more news on future tenants in the remaining vacant space.

“We see the potential in what a relationship with Fuyao can do for us,” said Dave Burrows, vice president for development at the Dayton Development Coalition. “$230 million in a community that was left for dead.”

The project is one of the largest economic development projects in the Dayton region in years.

It’s also been has been incentivized with $700,000 in funds from Montgomery County economic development funds as well as $600,000 from local government. JobsOhio could weigh additional incentives for the project.

Fuyao expects to invest another $6 million in site development and parking, $20 million in construction and around $200 million in equipment for the plant.